10 Best Roth IRA Stocks to Buy According to Analysts

5. American Express Company (NYSE:AXP)

Analysts Upside Potential: 18.04%

American Express Company (NYSE:AXP) is a New York-based financial services company that specializes in payment cards. In the fourth quarter of 2024, generated over $17 billion in revenue, reflecting a 9% year-over-year increase. Net income rose 12% from the previous year, exceeding $2.1 billion. The company saw record highs in annual Card Member spending, net card fee revenues, and new card acquisitions, issuing 13 million new cards throughout the year. It also expanded its global presence by adding millions of new merchant locations. Growth remained strong by year-end, with fourth-quarter billings climbing 8%, driven by higher consumer and business spending during the holiday season.

American Express Company (NYSE:AXP) is well known for its highly rewarding Membership Rewards program, which offers attractive perks and bonuses without requiring excessive spending. Unlike many competitors, the company both issues its own cards and processes transactions, giving it valuable insights into customer behavior. This allows it to tailor rewards, making its cards more appealing. As a result, many cardholders remain loyal, often using their American Express cards for years or even decades. In the past 12 months, the stock has surged by nearly 20%.

American Express Company (NYSE:AXP), one of the best Roth IRA stocks, is also a solid dividend payer. In January, the company increased its quarterly dividend by 17.1% to $0.82 per share. This represents Amex’s fourth straight year of dividend increases and its most significant raise in more than ten years. The steady growth in dividends highlights management’s confidence in the company’s long-term financial stability. The stock has a dividend yield of 1.21%, as of March 23.